Franklin Templeton launches U.S. dividend fund

Franklin Templeton Investments Corp. has introduced the Franklin U.S. Rising Dividends Hedged Corporate Class for Canadian investors looking to minimize currency exposure while investing in American equities.

The fund invests in U.S. companies that have had consistently rising dividends in at least eight of the past 10 years.

Franklin U.S. Rising Dividends Hedged Corporate Class reduces the potential effect of exchange rate fluctuations between the Canadian and U.S. dollars by investing in forward contracts. The new fund will invest in units of Franklin U.S. Rising Dividends Fund.

“We focus on investing in high quality companies that have significant dividend growth potential over the long term,” said Don Taylor, lead manager of Franklin U.S. Rising Dividends Fund since 2005. “Our strategy is an alternative to investing in current yield-oriented equities, many of which have become expensive in today’s low-yield environment.”

Taylor is with Franklin Advisory Services, LLC, based in Fort Lee, New Jersey, and is also the lead manager of the U.S.-based Franklin Rising Dividends Fund.

The new fund is also available in a Series T version designed to provide investors with tax-efficient monthly cash flows through Return of Capital.

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